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2023 (12) TMI 412 - MADHYA PRADESH HIGH COURTValidity of reopening of assessment - correctness of order u/s 148A (d) challenged - notice has been issued under Section 148 - object behind insertion of Section 148A - steps/procedure have been followed by AO prior to issuance of notice u/s 148A(d) - scope of amendment by the Finance Act, 2021 - petitioner seeks to challenge the legality, validity and propriety of the notice issued u/s 148 of the Act seeking to reopen the assessment for the Assessment Year 2016-17 which is based on the order under Section 148(A)(d) - HELD THAT:- This Court has culled out the foundational prerequisite of Section 148A of the Act, as aforesaid, to emphasize that if the inquiry contemplated in Section 148A is interpreted to mean a detailed inquiry where both sides can seek and adduce evidence/material (documentary/ocular), then the entire object behind Section 148A would stand defeated. The object behind Section 148A as is evident from the findings in the fountainhead decision of GKN Driveshafts (India) Ltd.[2002 (11) TMI 7 - SUPREME COURT] is to enable the assessee to be informed of the reasons and information suggesting that income chargeable to tax has escaped assessment and, therefore, in turn to empower the assessee to prepare and file an effective reply and thereafter the Assessing Officer to pass an order under Section 148A(d), followed by issuance of notice under Section 148 of IT Act. The object behind insertion of Section 148A by the Legislature w.e.f. 01.04.2021 inter alia appears as follows:- (a) to prevent rampant and casual issuance of notice u/S. 148 by the Revenue; (b) to save unnecessary harassment to the assessee of being subjected to reopening a case under Section 148; (c) to save the Revenue of the time and energy which may be vested pursuing frivolous and fruitless proceedings u/S 148 Considering the aforesaid, normally, the writ Court should not interfere at such premature stage when the proceedings initiated against the assessee are yet to be concluded by the statutory authorities. This Court refrains to interfere with the order(s)/notice(s) impugned. Pertinently, the question of going into the veracity and genuineness of the material/evidence forming the opinion of the AO suggesting that income of petitioner/assessee has escaped assessment ought not to be gone into while exercising writ jurisdiction under Article 226 or supervisory jurisdiction under Article 227 of the Constitution of India.
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